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Information Systems, Organisations and Management

Information Systems, Organisations and Management. Prof. Ciaran Murphy Department ofAccounting Finance and Information Systems National University of Ireland, Cork Ireland. Some Questions. Who is Ciaran Murphy ??? Accountant, Consultant, Academic, DSS, Mgt Acc, BPR,etc

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Information Systems, Organisations and Management

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  1. Information Systems, Organisations and Management Prof. Ciaran Murphy Department ofAccounting Finance and Information Systems National University of Ireland, Cork Ireland

  2. Some Questions • Who is Ciaran Murphy ??? • Accountant, Consultant, Academic, DSS, Mgt Acc, BPR,etc • What are we doing this week ??? • What will we learn?? • What is on the exam paper !!! • What time is coffee ???

  3. Organisations and Management in the 1990s

  4. New Business Environment • Fundamental Shifts in Management Thinking : Drucker, Porter,Senge etc • New Markets • Increased Competition in existing markets • Redefinition of sectoral interests • Falling Barriers • Corporate Restructuring

  5. Author Title Drucker Porter Senge Handy Post Capitalist Society The Competitive Advantage of Nations The Fifth Discipline The Empty Raincoat Shifts in Management Thinking

  6. Post Capitalist Society • “every few hundred years a sharp transformation has taken place and greatly affected society - its worldview, its basic values, its business and economics and its social and political structure.”

  7. The Knowledge Society • “ .... we are in the middle of another time of radical change , from the Age of Capitalism and the Nation-State to a Knowledge Society and a Society of Organisations.” • The primary Resource in the Post Capitalist Society will be knowledge and the leading social groups will be Knowledge Workers.

  8. The Competitive Advantage of Nations • “Why do some social groups, economic institutions and nations advance and prosper ?” (Porter1990) Japan Korea

  9. Progress and Change - The Empty Promise: Handy • “If economic progress means that we become anonymous cogs in some great machine than progress is an empty promise. The challenge must be to show how paradox can be managed.”

  10. We are not where we hoped to be !! • 1/2 * 2* 3 • There are limits to management • The Inevitability of paradox • “ .. we need a new way of thinking about our problems and our futures. The acceptance of paradox as a feature of our life is the first step towards living with it and managing it.”

  11. New Markets • Eastern Europe • Former USSR • China • Pacific Rim

  12. New Markets • Teen Agers • Emerging Middle Classes • Entertainment Games, Travel etc • Service sector • 24 Markets • Global Brands Coke, Sony, etc

  13. Increased Competition in Existing Markets • Airlines in Europe and north America • Banking and Financial Services • TV Cable, Computing etc • Auto Industry Korea • Crystal Eastern Europe

  14. Redefinition of Sectoral Interests • Banks and Insurance • Postal Services Royal Mail, La Poste • Microsoft and Entertainment Industry

  15. Falling Barriers to Markets • 1970’s EEC Free Trade in a protected Environment • 1990’s Three/Four Main Forces • Expanded EU • Pacific Rim - Asian Tigers • China • NAFTA

  16. Corporate Restructuring • IBM • At & T • ICI • Digital • Iberia • Mazda

  17. Corporate Restructuring • Relocation • Acquisition • Merger • Downsizing • Hyperextension of Operations • Time Stresses • Discontinuities • Political • Business • Economic • Social

  18. Technology Deregulation Competition Globalisation Recession Time Learning World Class Quality Core Competences Alliances Redefinition Mergers Customers Acquisitions Changing Rules Pressure for Change !!! Forces for Change

  19. Routes to Transformation Teams Empowerment TQM Benchmarking Delayering Matrix Management Time Groupware Core Competences OutSourcing IT Investment BPR ABC EIS ISO 9000 Balanced Score Card Routes to Transformation !!!

  20. Organisational Decline • 1/3 of 1970’s F0RTUNE 500 had vanished by 1983 • The death rate is increasing • 1/3 of today’s FORTUNE 500 will be gone in 10 years year’s time

  21. Environmental Complexity • Globalisation • Hyperextension of Operations • Time Stresses • Discontinuities • Political • Business • Economic • Social • Business Restructuring • Relocation • Acquisition • Merger • Downsizing

  22. THE CHANGING ENTERPRISE • Extended enterprise (EDI links) • Total Quality Management • Business Re-Engineering • Enterprise Engineering • Participative Management • Empowered Workforce • Massive automation • Investment pressures to upgrade technology and workforce

  23. Constant Change in Information Technologies • Relentless technology innovation • Massive growth in computer power • Massive growth in network power • Worldwide networks • Worldwide corporations • Computer-to-computer interaction among corporations, worldwide • Robotic factories • Instant money transfer • Worldwide consumer demand No-holds-barred competition among U.S., EC and Japan

  24. BUSINESS CHALLENGE INFORMATION SYSTEM BUSINESS SOLUTIONS INFORMATION SYSTEM MANAGEMENT INFORMATION TECHNOLOGY ORGANIZATION MANAGEMENT, ORGANIZATION & TECHNOLOGY DIMENSIONS INFORMATION SYSTEMS & INTERNET TRANSFORM ORGANIZATIONS PROCESS OF MANAGEMENT

  25. NEVER USE TECHNOLOGY FOR TECHNOLOGY’S SAKE • Improve competitiveness • Lower costs • Decrease cycle time • Delight the customer Use technology to :

  26. THE ROLE OF THE I.T ORGANISATION:A PARTNER IN ENTERPRISE REDESIGN Business Evolution Information Technology

  27. RE-INVENTION OF ENTERPRISE STRUCTURES Fundamental Changes in Technology Changes in the way we work

  28. A NEW INDUSTRIAL REVOLUTION We Are Here Time

  29. Competitive Pressures are Rising Rapidly • Changing Technologies • Automated factories • Fast redesign of products • Increasing rate of change • Shorter windows of opportunity • Pervasive information systems • Growth of high-tech countries (like Japan) • Growth of cheap-labour countries (Ex-USSR, India, China)

  30. CHANGING MARKETPLACE • Globalism • Trading Blocks • -Pacific Rim • -EC • -NAFTA

  31. CHANGING MARKETPLACE • Deregulation • More competitors ; lower margins • Oversupply of products ; greater choice • Increased customer expectations

  32. The I.T. Organisation : An aggressive change agent The Mission of the I.T. Organisation Make the enterprise as competitve/profitable/successful as possible

  33. EVERYTHING IS SPEEDING UP • Many new ways to attack competition • They must be sized quickly • Rapid design of products • Shorter windows of opportunity • Just in-time manufacturing • Computer-to-computer interaction with suppliers, purchasers, customers, ets. • Rapid adaptability, flexibility

  34. Company Product 1980 Now Honda Cars 5 Years 3 Years AT & T Phones 2 Years 1 Years Navistar Trucks 5 Years 2.5 Years Hewlett-packard Printers 4.5 Years 22 Months FASTER PRODUCT DEVELOPMENT Time from Inception to delivery

  35. SPEEDING UP Successful corporations move fast, change fast The least successful organisation : trapped in bureaucracy, unchangeable procedures

  36. FASTER PRODUCTION (from order to finished goods) Company Product 1980 Now GE Circuit breaker boxes 3 Weeks 3 Day Motorola Pagers 3 Weeks 2 Hours Hewlett-Packard Electronic testers 4 Weeks 5 Days Brunswick Fishing reels 3 Weeks 1 Week

  37. “ It is speed that is the deciding factor in most competitve situations- in identifying a new end use, in getting products to the market, in implementing new services, in resolving problems that reduce waste in responding to fashion trends, in designing better processes, in making effective organisational changes, in controlling inventories and distribution ,and in scenario simulations to optimise the machine/product mix.”

  38. Intercorporate Computing • Reduce inventories • Just in-time inventory control • Locate buying opportunities • Shorten development cycle Manufacturer Supplier

  39. Intercorporate Computing • Automatic re-ordering • Catalogue look-up • Customer can check order status • Lock in customer Customer Corporation Selling Firm

  40. AHS ASAP system 5000 customers on-line “ ASAP was largely responsible for driving competitors like A.S. Aloe & Will Ross Inc.from the national hospital supply distrubution business” Baxter could sell $5000/bed/hospital. AHS could sell $12000/bed/hospital. Baxter bought AHS.

  41. INTERCORPORATE NETWORKING SUPPLIER SHIPPER DISTRIB. CUSTOMER MANUFACTURER RETAILER BANK

  42. LESSONS FROM BENETTON Systems geared to speed of change Worldwide corporate transparency Immediate knowledge of changes in demand Everything integrated Low inventories; low capital Growth made possible by Many partnerships Many small manufacturers All on-line

  43. Shops Ads =3% of Sales Benetton Central Planning Central Design Ordering of Material Dye Works 400 Producers Warehouse Management Distribution

  44. Benetton • All shops on-line to central computer. Changes in demand, fashion, colour, immediately. • Robotic warehouses. Computerised logistics, worldwide. • Products in demand delivered immediately. Low inventory • Procurement controlled by central computer. Many small flexible subcontractors. • Factories on-line. CAD.CAM for cutting and sewing • Colour added at last possible minute • The whole worldwide corporation is “transparent”. Consolidated data and decision making.

  45. EMPLOY USER FACILITIES TO: BYPASS • Make airline bookings Travel agent • Send electronic mail/fax Mail service • Do banking from home Branch bank • Analyse and buy stocks Stock broker • Buy direct from factory Retailer/wholesaler • Transmit music to home Music store • Obtain sales info from store Market research

  46. BY PASS THE MIDDLEMAN • Much faster • Avoid the commision/fee • Sometimes easier • No translation & misunderstanding • Highly flexible

  47. Empower employeesSelf-directing teamsParticipative management • All employees can improve the design of their • work processes when challenged to.

  48. Traditional hierarchy • ASSUMPTIONS • Knowledge resides with the people at the top • People at the bottom of the hierachy • Orders must be passed down hierarchically KREMLIN MODEL

  49. KNOWLEDGE WORKER MODEL • Most workers are knowledge workers • KW’s use computerised knowledge. • KW’s have excellent training • KW’s are specialists who direct their own • KW,s are highly motivated • Financial rewards are related to value added • Kw teams and workgroups • Elaborate DSS, expert systems, etc • Performance and take responsibility

  50. MULTICORPORATE NETWORK MODEL • Computers in separate corporations are interlinked • KW,s can access databases in their trading partners • KW,s interact directly with KW,s in other enterprises

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